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Balanced

Aims:

To maximise long-term investment returns while containing fluctuations in returns over shorter periods.

To outperform an average annual return of CPI plus 3.0% pa (3.5% pa in pension) over rolling 10-year periods.

Risk profile:

Offers a greater emphasis on growth assets to achieve higher returns, but includes some lower-risk defensive assets to reduce short-term risks. This option is likely to produce a negative return in 3 to 4 years in every 20 years.

Risk Level:

High.

Investor profile:

Will suit investors looking for moderate to high returns over the medium to long-term, but who are prepared to accept some fluctuations in investment performance over shorter periods.

Investment strategy

The investment benchmark is 75% growth assets and 25% defensive assets, as shown in the table below:

Growth Assets

Benchmark %

Permitted range%

Australian shares

27

20-50

Overseas shares

27

10-40

Property

12

0-25

Alternative growth*

9

0-20

Total

75%

60-80%

Defensive Assets

Benchmark %

Permitted range %

Fixed interest

18

0-30

Alternative income

5

0-20

Enhanced cash

2

0-30

Total

25%

15-45%

*Alternative growth may include private equity, credit and infrastructure.

Minimum suggested time frame for holding the investment is 5 years.

The Trustee may adjust the asset mix or vary the investment strategy from time to time. This could include varying the mix between growth assets and defensive assets.

The Growth option is the default option for personal members who do not provide an investment instruction for all or some of their contribution.